HOUSTON, TX November 12, 2014  - ZaZa Energy Corporation (“ZaZa” or the “Company”) (NASDAQ:ZAZA) today provided an operational update concerning its East Texas development.  The Company is pleased to report successful progress with its two active wells in East Texas: 

  • Josey Wales #1HR.  The Company is preparing to test commingled production from two different types of completion approaches within the well’s lateral: (i) open-hole completion that has been stimulated with acid and (ii) a 14-stage limited cased stimulation designed to fracture a controlled area around the well bore.  Both approaches have confirmed petroleum production from the Buda formation without significant water.  Following a commingled production test, the joint venture plans to evaluate options for a larger stimulation of certain stages, which would seek to extend the well’s reach.


  • Colburn #3H. The Company has completed the drilling of its new Colburn #3H well targeting one of the deeper formations in the area.  The Colburn #3H is currently awaiting completion operations, which are scheduled to commence by the end of December.

President and CEO Todd A. Brooks commented, “While the process of methodically testing and evaluating the substantial number of productive pay zones in East Texas is both time- and capital-intensive, the Company has made significant progress in East Texas over the last year, confirming our assessment of the area’s great potential.” 

ZaZa’s current East Texas acreage holding is estimated to be ~158,000 gross acres and ~41,200 net acres, comprised of ~30,200 net acres within the EOG JV and ~11,000 wholly-owned net acres (subject to completion of elections).  The below table illustrates how ZaZa has advanced its East Texas operating area between September 30, 2013 and 2014:

East Texas Progress Over Past Year        
    9/30/2013   9/30/2014
EOG JV Total Acres   ~127,000*   ~144,000
EOG JV ZaZa Net Acres   ~32,000*   ~30,000
ZaZa Wholly Owned East Texas Acres   0   ~10,000
Total ZaZa East Texas Net Acres   ~32,000   ~40,000
Value Received from JV Partners ($ MM)   $79.0   $111.0
New Wells – Total (2 pending completion)   2   7
New Wells – Horizontal (2 pending completion)   1   4
New Wells – Vertical   1   3
Average ZaZa East Texas Net Production – boe/d   ~140   ~450
East Texas Joint Venture Partners   EOG   EOG & Quantum

* Acreage totals assume election into all phases of EOG JV, even though the transfer of the related acreage from ZaZa to the EOG JV occurred after September 30, 2013.

East Texas Drilling Accomplishments

  • Confirmed East Texas horizontal development option with McAdams 1H 30-day IP of 929 boe/d
  • Confirmed East Texas vertical development option with one-year production results from three vertical wells averaging 485 boe/d
  • Successfully drilled two new horizontal wells, which are currently in the process of or awaiting completion operations
 East Texas Commercial Accomplishments
  • Entered into agreements with Quantum Energy Partners to sell a portion of ZaZa’s EOG JV properties for $17MM in total consideration
  • Extended or renewed ~53,000 acres in the EOG JV since July 2013
  • ~27,000 acres in the EOG JV are now held by production
  • ~20,000 acres in the EOG JV are  newly acquired since July 2013
  • Acquired more than 11,000 new East Texas acres, outside of the EOG JV

East Texas Technical Accomplishments

  • Selectively completed, tested, and evaluated 106 separate completion intervals in 14 Eagle Ford and Lower Cretaceous Wells
  • Evaluated all East Texas JV wells for add-pay and workover opportunities; 26 wells with recompletion or workover potential identified
  • Gathered ~900 feet of whole core in 5 productive zones, in 3 different wells geographically spread out across the acreage – results validate productivity in all 5 zones and analyzed a further 600 feet of core from other wells
  • Gathered more than 250 side wall cores
  • Ongoing analysis of gas chromatograph data in multiple zones to determine source rock origin and ultimate potential
 Looking forward, we are following both imminent and longer-term East Texas milestones:  

East Texas Short-Term Value Creating Milestones (4th Quarter 2014)

  • Production testing results and possible further completion operations for the East Texas EOG JV Josey Wales #1H well, which is 16 miles away from McAdams Cattle Company #1H
  • Completion of East Texas EOG JV well Colburn #3H – initial results will test a deeper target and pave way for holding acreage with larger units
  • Currently shooting 3D Seismic with expected initial data in December 2014 – which will allow the Company to complete subsurface mapping and avoid drilling and completion hazards


East Texas Longer-Term Value Creating Milestones (2015)

  • Production results from the Colburn #3H’s test of a deeper formation
  • Use 3D seismic to optimize placement of further development wells, both horizontal and vertical
  • Test additional productive zones in the stacked pay for potential as stand-alone horizontal development targets
  • Begin to monetize East Texas Northern Development Area (consummate operational JV or develop with ZaZa as operator)
  • 200,000 barrels per day crude oil pipeline for Madison and Walker counties (operational by first quarter 2016), which is expected to increase realized oil prices in the area
  • Local utilities expanding electricity infrastructure, which is expected to lower field operations costs

About ZaZa Energy Corporation

Headquartered in Houston, Texas, ZaZa Energy Corporation is a publicly-traded exploration and production company with primary assets in the Eagle Ford and Eagle Ford East resource plays in Texas.  More information about the Company may be found at

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including without limitation, statements and projections regarding the Company’s future financial position, operations, performance, business strategy, returns, budgets, reserves, levels of production and costs, ability to raise additional capital or refinance indebtedness, statements regarding future commodity prices and statements regarding the plans and objectives of the Company’s management for future operations, are forward-looking statements.  The Company’s forward looking statements are typically preceded by, followed by or include words such as “will,” “may,” “could,” “would,” “should,” “likely,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “goal,” “project,” “plan,” “intend” and similar words or expressions.  The Company’s forward-looking statements are not guarantees of future performance and are only predictions and statements of the Company’s beliefs based on assumptions that may prove to be inaccurate.  Forward-looking statements involve known, unknown or currently unforeseen risks and uncertainties that may be outside of the Company’s control and may cause the Company’s actual results and future developments to differ materially from those projected in, and contemplated by, such forward-looking statements.  Risks, uncertainties and other factors that could cause the Company’s actual results to materially differ from the expectations reflected in the Company’s forward-looking statements include, without limitation, our former registered public accounting firm has expressed doubt about our ability to continue as a going concern; fluctuations in the prices for, and demand for, oil, natural gas and natural gas liquids; our substantial level of indebtedness; risks associated with whether and when the reserve based debt facility will be finalized and on what terms; problems with our joint ventures or joint venture partners; our ability to raise necessary capital in the future; exploratory risks associated with new or emerging oil and gas formations; risks associated with drilling and operating wells; inaccuracies and limitations inherent in estimates of oil and gas reserves; our ability to replace oil and gas reserves and any other factors or risks listed in the reports and other filings that the Company has filed and may file with the Securities and Exchange Commission.  Any forward-looking statements made by the Company in this presentation and in other written and oral statements are based only on information currently available to the Company and speak only as of the date on which they are made.  The Company undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future developments or otherwise.

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Source: ZaZa Energy Corporation

Paul F. Jansen, 713-595-1900

Chief Financial Officer


Jay Morakis, 212-266-0191
Investor Relations